MUMBAI (Scrap Monster): The country’s trade deficit for the month of October ’14 declined 6% over the previous month to $13.35 billion, when matched with the Sep ’14 deficit of $14.25 billion. The trade deficit for the month narrowed despite sharp 280% jump in gold imports during the month. However, trade deficit edged higher when compared with $10.5 billion during October last year.

 

The lower oil imports were compensated by higher gold imports during the month. Gold imports during October this year skyrocketed to $4.17 billion, rising 280.4% over the previous year. The huge spike in gold imports helped India to regain its position as the world’s largest gold consumer during Q3 this year. As per Trade Ministry sources, India’s gold shipments in October surged to nearly 150 tonnes, even higher than the September ’14 intake of 143 tonnes.

 

Silver imports too rose sharply by 136.2 per cent to $686 million during Oct ’14.

 

The trade data indicates that overall exports and imports by the country dropped significantly during Oct ‘14. Overall exports during the month dropped to $26.09 billion from $28.9 in September, while overall imports slipped to $39.5 billion compared to $43.15 in the previous month.

 

Meanwhile, Reserve Bank of India (RBI) Deputy Governor announced today that it is in talks with the government to formulate ways to limit gold imports into the country. It proposes to tighten gold import norms, including rolling back of the relaxations announced in May this year.

 

However, trade sources indicate that the gold imports are most likely to diminish in the upcoming months. The jump in gold imports during the past two months is attributed to increased festive season demand, they noted. The festive season demand having subsided now, there are lesser chances of gold imports staying at higher levels during rest of the year, they added.